Can You Use $8000 More for Your Down Payment?

I know that I can. Unfortunately, I do not qualify. But, if you are a first time home buyer, someone who hasn't owned your own home for at least 3 years, you just might be able to take advantage of this.

As of Friday, May 29, 2009, H.U.D. has approved the monetization of the $8000 tax credit. What that simply means is that the tax credit, however much your home purchase qualifies for, can be used for part of your down payment or closing costs. No, the government will not give you a check that you can take to closing, but, lenders are now free to consider this and apply it to your down payment or closing costs.

How this will be done has not yet been determined, but, it will most likely be in the form of a short term "bridge" loan that will be payable at the time you receive your tax credit. I have not seen any programs announced, but expect that within a few days the various banks and other lenders will have packages set up.

What does that mean to you? It will mean that you can possibly afford a more expensive home, or, that you can have lower house payments if you apply your credit to the down payment or closing costs.

Is it a wise thing to do, or the best thing to do for you? That, I cannot tell you. I don't know your situation, and, I am also not a financial adviser. You will need to work that out for yourself, or with the help of a qualified financial adviser.

If you would like more information on the First Time Home Buyer's Tax Credit, or, if you are interested in buying or selling your home or land in Athens-Clarke County, Jackson, Barrow, Madison, Oglethorpe and Oconee Counties, give me a call at 706-207-5290. Or, you can click here to email me with any inquiries. To search for homes and land in and around Athens, GA please visit my website, The Athens Real Estate Page.